Treasury sanctions A7 Network and proposes rule over alleged Iran sanctions evasion
The Treasury Department says it is targeting a Russia-linked shadow banking network that it alleges Iran used to move money despite U.S. sanctions.
What we know
- The Treasury Department said its Office of Foreign Assets Control sanctioned the A7 Network as a significant transnational criminal organization. [1]
- Treasury said FinCEN proposed a rule that would prohibit transmittals of funds involving transactions tied to the A7 Network's Sub-Agents. [1]
- FinCEN also issued an alert to help financial institutions detect and report suspicious activity related to the network. [1]
- Treasury described the action as part of Operation Economic Outcast and called A7 a shadow banking network with ties to Russia. [1]
- Not yet confirmed: The Treasury posts do not say who runs the A7 Network, how much money moved through it, or when the proposed FinCEN rule would take effect. The description of the network's use by the Iranian regime is Treasury's own claim.
The U.S. Treasury Department said on Oct. 1 that it took action against the A7 Network, which it described as a shadow banking network with ties to Russia that the Iranian regime used to evade sanctions. [1]
In a post on X, Treasury said the move was part of Operation Economic Outcast. It said the Office of Foreign Assets Control sanctioned A7 as a significant transnational criminal organization. [1]
Treasury said FinCEN proposed a rule that would prohibit transmittals of funds regarding transactions involving the network's Sub-Agents. [1]
FinCEN also issued an alert to help financial institutions detect and report suspicious activity related to A7, Treasury said. [1]
Treasury Secretary Scott Bessent wrote on X that the department is dismantling the financial infrastructure that lets Iran and other adversaries evade sanctions, move illicit funds and undermine the global financial system. [2]
Bessent said the action continues Treasury's efforts to isolate Iran and its financial enablers. Anyone who facilitates illicit finance for America's adversaries, Bessent wrote, "will lose access to the U.S. financial system." [2]
The posts did not include details on the network's operators or the scale of its activity.
RECEIPTS · 2 SOURCES
- 1POST ON X · @USTreasury (Treasury Department)Today, Treasury took unprecedented action against the A7 Network, a shadow banking network with ties to Russia used by the Iranian regime toOpen source ↗ Archived copy
- 2POST ON X · @SecScottBessent (Treasury Secretary Scott Bessent)Treasury is dismantling the financial infrastructure that allows Iran and other adversaries to evade sanctions, move illicit funds, and undeOpen source ↗ Archived copy